Travelodge bolsters aggressive growth plans – by acquiring 52 Mitchell and Butler pub group Innkeeper Lodges

16th July 2010, 3:02pm

Budget hotel chain Travelodge has announced what its calling “the biggest transaction in the hotel sector since 2008” after acquiring the leases of 52 Innkeepers Lodges – a total of 1994 rooms – from restaurant and pub operator Mitchells & Butlers.

The 52 UK hotels include grade 11 listed buildings and range from 21 to 85 room premises that are all adjacent to a Mitchells & Butlers restaurant and pub.

The deal, consolidated by a 25-year lease on the properties will see the Travelodge portfolio reach 452 hotels and increase its stock of rooms to 30,504 across the UK, Ireland and Spain.

As part of the deal, Travelodge will invest £10 million in a programme to convert the hotels to bring them in line with the Travelodge brand. Among the plans include replacing all the beds, decorating the hotels and building new reception areas.

While the company aims to retain the 430 staff from Mitchells & Butlers, it will also be creating 115 new jobs including 25 management roles and 90 hotel staff positions.

Travelodge hopes the transformation of the hotels will be completed within four months and will come under the company's pricing policy of rooms from £19 per night.

Executive chairman for Travelodge, Grant Hearn said: "We have an aggressive growth plan in place and with this acquisition we are on track to more than double the size of Travelodge hotels over the next ten years. We hope to explore further opportunities like this deal with other similar businesses.

"All 52 properties are great additions to the Travelodge brand and each location will draw on both the business and leisure markets. We look forward to working alongside Mitchells & Butlers in driving new customers to our hotels and their restaurants and pubs."

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